Former Duane Reade executives indicted on fraud charges

NEW YORK - The former chief executive and chief financial officers of Duane Reade Inc. have been indicted on charges they exaggerated the company's income to investors.

The men - ex-CEO Anthony Cuti and ex-CFO William Tennant - were indicted today in U.S. District Court in Manhattan.

Scott Lituchy/The Star-LedgerAnthony Cuti, CEO of Duane Reade, stands outside one of his drug stores in Edgewater in January of 2003.

Prosecutors accused them of doctoring the financial books from December 2000 through June 2005.

The government said they exaggerated the company's performance to meet their own financial projections and the expectations of securities analysts.

Prosecutors said the men reported inflated income from fraudulent real estate transactions. They said the men also reduced company expenses through fictitious credits from vendors who worked for Duane Reade.

Lawyers for both men did not immediately return phone calls for comment.